Presentation by Joseph R. Krier Greater SA Chamber President/CEO

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1 Texas Transportation Forum Future of Transportation Financing Presentation by Joseph R. Krier Greater SA Chamber President/CEO June 9, 2006

2 San Antonio Congestion: Contributing Factors 1 million new residents by percent growth in employment by 2030 Toyota plant and 22 on-site suppliers Int. Trade 50 percent of export/import traffic with Mexico flows through region IH truck traffic growing 15%/year BRAC 14,000 new employees Ft. Sam 2

3 San Antonio Funding Gap $8.4 B funding gap for congestion relief highways and major arterials $8.5 B additional needed to rehabilitate existing network B total funding gap to 2030 Even more needed for local street network. 3

4 Advanced Transportation District $34 million in new annual funding Approved by voters in November 2004 Leverage additional street, transit, and highway improvements _ for VIA _ for City 10 _ TxDOT leverage 16 8 major highway projects being accelerated 3-11 years 4 projects to be let in (along IH, IH, IH 10) Advanced Transportation District (ATD) TxDOT Projects North 4

TxDOT/AlamoRMA Proposed Toll Lane System Partnering with TxDOT on evaluation of CDA proposals for added capacity tolled lanes along Loop and US 281

5 TxDOT/AlamoRMA Proposed Toll Lane System Partnering with TxDOT on evaluation of CDA proposals for added capacity tolled lanes along Loop and US 281 Alamo RMA is initiating financing and engineering plans for added capacity tolled lane projects along: IH SH 16 US 281/ Wurzbach Parkway Interchange 5

6 San Antonio / Bexar County MPO 25 Year Plan Old Way Of Doing Things * Piece-Meal Construction 16 * 25 Years To Implement 281 * $ 774 Million In First 10 Years 37 6

7 San Antonio / Bexar County MPO 25 Year Plan New Way Of Doing Things * Whole Project Construction 16 * Accelerate Projects 281 * Leveraging 37 * $ 2.5 Billion In First 10 Years 7

8 Transportation Finance Committee Created under Senate Bill 1713 Nine members Will conduct hearings and study public policy implications relating to the financing of transportation projects Will review the state motor fuels tax, current sources of funding for rail, and other financing options for all modes of transportation The Commission will issue a report by December 1,

9 Transportation Finance Committee Members Sen. John Carona, Joint Chair Rep. Mike Krusee, Joint Chair Rep. Warren Chisum Judge Robert Eckels Commissioner Ted Houghton, Jr. Senator Eddie Lucio William Madden Michael Stevens Joseph R. Krier 9

10 Texas Choices NON TOLL OPTION If we do nothing, inflation drives up the ultimate cost of doing something to add highway capacity. If we do nothing, our existing infrastructure will deteriorate further as more vehicles tear up our roads. If we do nothing, by 2014, we will have no money to increase the capacity of our highways, as the cost to maintain our roads skyrockets. If we do nothing, the funding gap to build needed capacity widens to $258 billion because of inflation and the increased cost to maintain our roads. 10

11 Texas Choices GAS TAX OPTION A gas tax of $1.40 will generate enough revenue to pay for all the identified improvements to our highway system by

12 Texas Choices DEBT OPTION We have the authority to bond up to $3 billion of the State Highway Fund which would allow us to accelerate up to $1 billion of currently planned projects per year. We will be able to avoid the inflation cost of building these projects now rather than later. However, in future years, we will have less money to spend on new capacity since we will be paying a debt service of $4.8 billion on payments from future gas tax revenues. 12

13 Texas Choices DEBT OPTION (Cont.) In order to cover this gap, we d d have to raise the gas tax 9 cents in 2009 and increase it continually until 2030 when it is increased by $1.83, and then return to 9 cents in On average the gas tax increase would be 96 cents. 13

14 Texas Choices TXDOT OPTION The approach the commission has taken to close the gap uses the time-tested principles of free market economics, competition, and consumer choice. We will issue bonds backed by toll revenue to build and maintain new capacity on our highway system. We will give Texans the option to choose whether or not they want to get to work and get home faster. 14

15 Texas Choices TXDOT OPTION (Cont.) We have already identified $25 billion in toll projects to help bridge the $86 billion gap. During the next 25 years as population increases, we will identify additional toll projects to fund the remaining gap. 15

16 Texas Transportation Forum Future of Transportation Financing Presentation by Joseph R. Krier Greater SA Chamber President/CEO June 9, 2006

TESTIMONY. The Texas Transportation Challenge. Testimony Before the Study Commission on Transportation Financing

TESTIMONY. The Texas Transportation Challenge. Testimony Before the Study Commission on Transportation Financing TESTIMONY The Texas Transportation Challenge Testimony Before the Study Commission on Transportation Financing Ric Williamson Chairman Texas Transportation Commission April 19, 2006 Texas Department of